The plethora of California tax credits continues to grow……

CALIFORNIA TEACHERS TAX CREDIT

 Details of this new income tax credit are limited at this time.  Generally, the credit will be limited to 50% of the CA personal income tax attributable to the teacher’s income.  The credit ranges from $250. for newer teachers to $1,500. for the most experienced.  The Franchise Tax Board is now providing guidance on this credit at: http://www.ftb.ca.gov/forms/misc/801.pdf

CALIFORNIA LONG TERM CARE CREDIT

 Certain taxpayers who care for the elderly or disabled in their home will be eligible for a credit of $500.

INCREASE IN R & D CREDITS

The research & development credit is increased from 12% to 15%

The alternative incremental research credit increases from 80% to 90% of the June 30, 1999 federal credit.

FOR THOSE BUSINESSES NOT DOING SO WELL

The amount of general net operating losses eligible for carryover will increase from 50% to 65% on a phased-in basis.

Access official California budget highlights here.  (This is a large .pdf file, please be patient.)